Banks in the dark over allocation

Bankers to the Rajasthan state discoms were stunned on Tuesday when told they would be allotted the UDAY bonds since they had received no prior intimation from either RBI or the finance ministry, reports Shayan Ghosh in Mumbai.

Bankers to the Rajasthan state discoms were stunned on Tuesday when told they would be allotted the UDAY bonds since they had received no prior intimation from either RBI or the finance ministry, reports Shayan Ghosh in Mumbai.

Bankers to the Rajasthan state discoms were stunned on Tuesday when told they would be allotted the UDAY bonds since they had received no prior intimation from either RBI or the finance ministry, reports Shayan Ghosh in Mumbai.

According to bankers who did not wish to be named, they were not asked whether they wanted the bonds to be allocated and what quantum they would like. They were merely informed by the ministry at around 4 pm in the afternoon that their current accounts with RBI would be debited in exchange for a certain amount in lieu of the securities.

“On Tuesday, several banks’ accounts were credited with the Rajasthan discom’s Uday bonds. The ministry simply informed us that we would be given a certain quantum bonds,” a banker said, on condition of anonymity. “It was not as though we had a choice we were just informed,” another banker said. According to him, some banks had some issues with the debit and credit process because the loan conversion will not be immediate, while their money has been immediately debited.